RE: Hedging27 Dec 2025 15:57
Why anyone would think a PUT option is NOT a hedge is beyond me. It quite clearly is - you can ask Dr Google if you wish.
It gives you the RIGHT but NOT the obligation to sell some stuff at a pre-determined Price, for which you pay Premium.
In other words you are buying some insurance to protect on the downside (if the Gold Spot price went South in a big way).
Without looking I don't know what % GGP have hedged; maybe a 1/3rd or a 1/4 of quarterly production with different hedge set to expire at different point in the future.
JB
ps I used to work for a hedgie. just saying.